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Indian rupee strengthens as USD/INR falls near 95.40

The USD/INR move is linked to a 3.1% drop in MCX crude oil and lower US Treasury yields, with 10-year yields around 4.67%.

Reported · Written up by our desk · Major Pairs

The Indian rupee strengthened in afternoon trading, pulling the USD/INR pair down to near 95.40, its lowest level in more than a week, as the dollar weakened against the rupee, according to FXStreet.

The rupee’s rise tracked softer oil prices and declining US Treasury yields. MCX Crude Oil for the September 21 contract was down 3.1% to around Rs. 7,880, with analysts noting expectations that the US shift from military action toward economic pressure would be less damaging for oil markets.

FXStreet also pointed to the impact on bond markets, saying Deutsche Bank noted that lower oil prices brought some relief to Treasuries, with US yields falling across the curve. As of the report, 10-year yields were down 0.6% to about 4.67%, and 30-year yields were about 0.55% lower near 5.2%.

Lower bond yields improved the appeal of riskier currencies like the Indian rupee, FXStreet added, while noting USD/INR held below the 20-day EMA at 95.5847 and remained mildly bearish. Separately, the outlet cited Reuters reporting that US Treasury Secretary Scott Bessent warned of extending economic pressure on Iran and outlined a sanctions enforcement approach described as a “zero leakage” process.

Latest closeWTI crude $82.40 ▲1.4%

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